Protection and insurance

If you think about your core team, the skills and more importantly knowledge of your business and its inner workings that your key individuals have, what would you do if you unexpectedly lost them to illness or sudden death? Are they replaceable and at what cost to your business?

Your Fairstone adviser can help you to understand the importance of setting up corporate insurance.

Business protection

The death or serious illness of a key director or employee can cause significant consequences for a business including:

  • Loss of profits

  • The recall of loans

  • Reduced capacity

  • Loss of key clients/contacts

  • Reduced practical know-how

You can reduce the risks for yourself and your business with the following protection options:

Shareholder protection

The death of a major shareholder could have a serious impact on your business.

You have two situations to consider:

  1. If the shareholder’s beneficiaries decide to cash in their inherited shares
  2. If the existing shareholders wish to purchase the shares, but lack the adequate funds to do so.

Shareholder protection can help with this by setting out how shares are to be managed if a shareholder passes away. The policy can also include critical illness and is taken out on the lives of each shareholder by either fellow shareholders, or the business. Should a shareholder die or become critically ill, pay-outs can be used to purchase the shares of the holder.

Key person insurance

Key person insurance is a policy that helps to safeguard a business against the financial impact of death, terminal illness or critical illness of a key person during the policy term. It will usually cover you for recruitment and training costs and well as the value of lost business.

The policy is written on the life of the key person but owned and paid for by the business.

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Employee benefits

You know that your employees are your greatest assets and that when they are fully engaged they can be your best brand ambassadors.

Employee incentives can be the key to attracting and retaining the key people that will help you to drive your business forward.

Typically, these incentives include employee insurance and health care, workplace pension schemes and related HR benefit administration. The package you provide is completely dependent on what is appropriate for you and your business objectives. Your Fairstone financial adviser can help you create a bespoke package that meets your budget and your end goals, whilst at the same time keeping you compliant with your auto enrolment obligations.

Corporate pensions

As a business owner, how are you supporting your employees to plan for their retirement? There are a range of potential solutions that will provide both you, and your employees, with tax efficient retirement benefits.

It has long been recognised that most people are not saving enough for retirement and, as a result, may not be able to live comfortably on their state pension alone.

Your Fairstone adviser can help you to understand the range of corporate pensions and the benefits to your business and employees.